Apple is the world's biggest technology company by revenue. The
company has, because of its tax-avoidance approach, often got into regulatory
crosshairs. In August 2016, the Cupertino, California-based tech behemoth was ordered by the European Union to pay a fine of euro14 billion for breaking tax laws.
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| Source: Economic Times |
After years of neglect and if I may say, marketing myopia and downright arrogance,
Apple has evinced interest in setting up production units in India. It won’t
directly own the production units; rather, they will be set up by Wistron, a contract
manufacturer of electronic devices. Also, it won't export its made in India phones and other devices!
In India, a single brand retailer has to source 30% of the stuff
sold from local business units; this, the Government believes, will give
impetus to local industry to invest better technology and thus enhance overall
manufacturing ecosystem and higher employment generation.
About six months back, Apple asked for a waiver of this 30% local
sourcing clause and the Government of India agreed to it on the condition that
such waiver will be for the first three years only. Now it is asking for more
in terms of tax breaks and other concessions. I think the government should not
concede any more concessions than are available to all such companies in the
sector. I am sure giving into Apple’s demands will create a lot of heartburn
and set a bad precedence.
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